GE (version 0.4.8)

SCES: Standard CES Function

Description

Standard CES function, e.g. alpha * (beta1 * (x1 / beta1)^sigma + beta2 * (x2 / beta2)^sigma)^(1 / sigma) wherein beta1 + beta2 == 1.

Usage

SCES(sigma = 1 - 1/es, alpha, beta, x, es = NA)

Value

The output or utility level.

Arguments

sigma

the sigma coefficient.

alpha

the alpha coefficient.

beta

a vector consisting of the beta coefficients.

x

a vector consisting of the inputs.

es

the elasticity of substitution. If es is not NA, the value of sigma will be ignored.

Examples

# \donttest{
beta <- c(0.6, 0.4)
SCES(alpha = 1, beta = beta, x = beta, es = 0.5)
# }